Following an Aug. 28 Select Board meeting, Provincetown expanded the residential tax exemption from 25% to 35%, a measure aimed at boosting year-round housing and addressing the town’s housing issue.
According to Provincetown Select Board member Austin Miller, other cities around the commonwealth have already enacted a home tax exemption provision
In a recently published article from Cape Cod Times, according to Miller, the availability of year-round rentals in Provincetown has decreased because property owners can earn considerably more money through short-term rentals through sites like Airbnb and Vrbo. According to Select Board member Leslie Sandberg, numerous residents in town are “house rich but cash poor,” and the exemption is another tool to assist ease some financial pressure.
People who own a second home, as well as those who own investment property, may find the new measure annoying, according to Miller. Sandberg stated that considering the amount residential tax exemption of second house owners in Provincetown, the decision to impose this policy was not taken lightly.
According to the recently published article from Yahoo News, “If anyone is affected by a higher tax assessment and is having difficulty meeting that payment, I would encourage those folks to consider renting that property out to a year-round tenant and taking advantage of the residential tax exemption in that way,” Sandberg said, noting that the decision to implement this measure was not made lightly, given the number of second home-owners in Provincetown.
“Second homeowners are generous,” Sandberg remarked. “And I hope that their commitment to our community will help us preserve our year-round community — because Provincetown would not exist without a year-round population.”